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In the event of an emergency, the last thing you’ll want to worry about is whether your personal belongings are adequately covered by your insurance. Make sure your possessions, and the lives of your family and your tenants, are protected with the correct type of insurance for your situation.

Do you have homeowner’s insurance for your rental properties? If so, your home and its contents may not be covered should you need to file a claim. Read on to understand which kind of insurance is best for you.

Landlord Insurance vs. Homeowner’s Insurance for Your Home

Both homeowner’s insurance and landlord insurance cover your home, fences, and outbuildings such as garages and gazebos from damage caused by lightning, fire, hail, wind, or other covered occurrences. However, in some cases your policy may be deemed invalid if you have the wrong type of insurance for your property.

Personal Property

Your personal belongings, such as clothing, electronics, appliances, and furniture, are all covered by homeowner’s insurance in your primary residence.

Landlord insurance usually covers all the things that belong to you that are used to service or maintain the property. For example, any furniture, appliances such as dishwashers and refrigerators, or machineries such as snowblowers or lawnmowers would all be included in a typical landlord insurance policy.

If you leave a box of your family’s winter clothes, however, in the rental property for storage, and the home is damaged in a fire, the clothes would most likely not be included in an insurance claim because they are not meant for use by the tenants for the upkeep of the home.

It is worth noting that neither homeowner’s insurance nor landlord insurance covers your tenant’s possessions. Renter’s insurance should be encouraged for all tenants to protect their personal belongings.

Loss of Use or Loss of Rent

Though these two types of coverage are similar, they vary slightly depending on whether you have landlord or homeowner’s insurance.

With homeowner’s insurance, a typical policy includes the cost of alternative accommodation, such as a hotel room, if your home is in need of repair due to a covered event, like a lightning strike.

A landlord insurance policy will provide compensation for a loss of rental income if your tenants have to move out due to damage caused by a covered event.

Personal Liability

In a standard homeowner’s insurance policy, you may file a claim if you or your family members are injured in an accident, regardless of whether the accident occurs inside the home or not. If someone is visiting your home and they are injured in an accident, your homeowner’s insurance will help pay for their medical bills and any legal bills you may incur.

With a landlord insurance policy, usually, your renters and their guests will be covered only in an accident that takes place at the property.

Rental Terms

If you live in the property most of the time, but rent it out occasionally while you are away on vacation, your regular homeowner’s insurance should be enough. If it’s not your primary residence, however, you will need landlord insurance for proper coverage, even if you live at the property between tenants or while doing renovations. If you are renting out a room in your residence, homeowner’s insurance will generally cover your assets.

Read Also: Does My Home Insurance Cover Vacation Rental Properties?

Landlord Insurance vs. Homeowner’s Insurance: Which One is Best for Me?

Although this article offers an insight into whether landlord insurance or homeowner’s insurance is right for you, it’s a good idea to contact an insurance agent for questions regarding your specific situation.

Read Also: What Information is Need for a Homeowner’s Insurance Quote?

There are several factors that go into whether to purchase landlord insurance vs. homeowner’s insurance, and a professional insurance agent can help you make the correct choice and avoid unnecessary loss.

Homeowners and landlords in the Lafayette, Franklin, and Abbeville areas of Louisiana should contact the Thomson Smith & Leach Insurance Group to help guide them toward a policy that will offer them the most comprehensive coverage.

With more than 50 years in business, you can rest assured that your family and property will be well looked after. Contact us today for a free consultation to discuss options with our helpful insurance agents!